What's behind the dispute over The Plunge

Eleven years ago Belmont Park was a financial failure better known for its homeless population than its carnival rides. Today it is a quintessential San Diego attraction and the crowded epicenter of summertime fun in Mission Beach.

That rebirth is attributed to a deal struck in 2000 between businessman Tom Lochtefeld and the city under which Lochtefeld agreed to take over operations and revitalize the park. In exchange for a significant break on rent, he invested heavily in the beachfront amusement park and ignited a turnaround that has increased the venue’s annual revenue from $9 million to $21 million.

Now that once-successful relationship has collapsed, leading to last month’s closure of the historic Plunge pool. A bankruptcy hearing set for June 30 is likely to end with Lochtefeld on the outside looking in and Belmont Park’s future in question.

The resounding chorus from Mission Beach residents in recent weeks has been to ask a simple question with a complicated answer: Why?

The dispute between Lochtefeld and the city is essentially over how much rent he should pay to run the seven-acre property, but it’s also a tale of broken promises, questionable financial moves and personality clashes that may culminate in the San Diego treasure changing hands for the fourth time in as many decades.

William Bradshaw, a former member of the Mission Beach Town Council and 23-year neighborhood resident, said he worries the park could be headed back to its less-than-stellar past.

“I think the real problem is that closing The Plunge itself is just one step in a process that is eventually going to lead to the degradation of the entire park,” he said. “I don’t know what the city is trying to accomplish with this.”

The brainchild of sugar magnate John D. Spreckels, the Mission Beach Amusement Center opened in 1925 with two key attractions: the Giant Dipper Roller Coaster and The Plunge, the world’s largest saltwater pool (although today it’s filled with fresh water). Later renamed Belmont Park, it fell into disrepair in the 1960s before closing in 1976.

The city-owned park reopened 20 years ago but continued with a flawed business model focused on retail that saw its shops and restaurants struggling to survive nine months a year.

Lochtefeld, a San Diego native whose artificial wave machines were a hit with surfers worldwide, was approached by city leaders to run the park and convert it into a water-themed attraction. He jumped at the chance but not before the city agreed to subsidize rent and allow for future development to make the park economically viable.

Lochtefeld, 58, said he paid $6 million for the lease rights and then spent $6 million on improvements and equipment, including $2.8 million for two wave machines.

In exchange for the investment, he has received about $8 million in rent subsidies from the city over the past decade.

The revitalization hit a snag in 2006 when Lochtefeld presented his plan to develop a 300-plus room hotel, a four-story parking structure and new attractions, including a “Cirque du Soleil”-style water show. He said it was needed to solidify the financial turnaround; city officials were less than enthusiastic.